Softer USD Tone Persists, Yen Gains Remain In Focus

The tone remains for USD weakness in the first part of Friday trade. The BBDXY USD index last near 1253.4, down 0.10% versus end NY levels from Thursday.

• Yen was stronger in the first part of trade, with USD/JPY dipping to 152.88, fresh lows back to mid April. We sit slightly higher now, last around 153.10/15, still 0.30% stronger in yen terms.
• Japan markets are out today (and Monday), which will be impacting liquidity. This also means no cash US Tsy trading. Tsy futures sit slightly lower in the first bit of trade.
• US equity futures are higher, led by the Nasdaq (+0.65%), buoyed by late Apple results. This is aiding higher beta plays with both AUD and NZD ticking higher, although both currencies still trail yen gains.
• AUD/USD was last near 0.6575/80 (+0.20%), while NZD/USD had firmed up towards 0.5970 (+0.15%). The AUD/NZD cross bias still appears skewed higher, although we haven't been able to breach the 1.1030 level.
• Coming up is Australian housing finance activity, which is projected at +1.0% for March. This is unlikely to be a sentiment mover though.
• Otherwise event risks are light in the region, as markets await the US NFP outcome later.